10, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview
The European currency has strengthened versus the dollar at the yesterday's session, registering just 60 points less growth. The ECB’s statements about the absence of the deflation signs in the euro area improved the euro sentiment. That news was not surprise as the European Central Bank Governing Board J. Bonnici, and then J. Weidmann, who recently surprised the market with statements, that the head of the Bundesbank fears of a serious deflation threats, talked about that.

The support is 1.3800. The resistance is 1.3860.

There is a confirmed and strong buy signal. The price left the Cloud and it is above the Chinkou Span now. The upward movement will be until the price is above the Cloud. The Tenkan-Sen is crossing the Tenkan-Sen upwards forming a golden cross. The cloud is uprising.

The MACD histogram crossed the zero line upwards; it continues to rise up smoothly, and thus delivers a signal to buy the euro.

Trading recommendations

The pair is going upwards. If the price consolidates above the resistance 1.3860, it may continue the upward movement in the short term. The potential target is 1.3900.